Full-Cycle Mortgage Servicing Platform
On the back of the acquisition of a substantial non-performing residential mortgage portfolio by the Fund in the Philippines, BFS built an international best-practice, full-cycle mortgage servicing operating platform. Consistent with the retail and high-volume nature of the mortgage servicing business, the platform features highly-automated, workflow-driven processes and maximum standardization of process steps along with the ability to incorporate idiosyncratic requirements of clients and/or local jurisdictions for all facets of the mortgage servicing business. BFS follows international best practices patterned after the U.S. prime mortgage market, lending institutions, and servicing institutions. As a result, the mortgage servicing platform is also uniquely positioned to address the servicing requirements of residential mortgage owners and investors, such as banks and developers, so that these parties may concentrate on their respective businesses.
Specifically, BFS’ Mortgage Servicing Platform core competencies are:
- Loan Origination
- Credit Underwriting and Management
- Loan Servicing and Billing Cycle Management
- Legal Management
- Delinquency Management
The resolution of non-performing residential mortgage loans require lead generation activities to inform borrowers about the status of their accounts, highlight program options available to them to settle their obligations, as well as draw them to BFS offices to actively discuss, negotiate, and finalize loan modification documentation.
Also, in the course of selling foreclosed properties, BFS actively identifies and originates creditworthy buyers who have the capacity to sustain payments under term financing.
To protect the credit quality and integrity of our serviced portfolios, BFS employs the strictest guidelines in the financial evaluation, underwriting and approval of loans, and implements customized service in administering and enforcing credit requirements under the loan agreements.
In servicing new and restructured loans, BFS safeguards the processes essential to proper documentation and procedures as well as ensures portfolio protection through counseling, delinquency management, insurance, and a meticulous reminder process.
BFS takes an integrated approach in the management of all legal requirements such as advisory services, legal documentation, archiving, resolutions via loan modifications, loan transfers, secondary market restructured loan sales, property sales and term financing, litigation management, and vendor transactions.
BFS takes a proactive approach to identifying potentially delinquent accounts at the earliest time, and provides solutions to mitigate delinquencies and convert accounts to performing loans before they can default.
- Remedial Management
- Default Management and Loss Mitigation
- Property Marketing and Sales
- Property Management
BFS actively manages non-performing loan accounts through dedicated account specialists subjecting each account to lead generation activities, borrower counselling through account calling and physical visits, account profiling, negotiation towards term sheet generation, approval of proposed loan modification terms, settlement documentation and closing.
After exhausting remedial management, and to maximize asset recovery, collateral ownership enforcement is resorted to as a last resort, but once initiated is followed through resolutely by an internal dedicated legal team managing the foreclosure — and where necessary, eviction – process end-to-end to set and meet aggressive timelines in coordination with the courts and other critical government agencies. In exercising ownership rights, BFS also maintains on occasion strategic partnerships to manage litigation and Writ of Possession activities.
BFS utilizes in-house sales as well as an accredited nationwide broker network for a focused and managed disposition strategy.
BFS preserves its property assets with targeted deployment of security and maintenance services through managed outsourcing to strategic partner service providers. This is done in accordance with stringent BFS property management guidelines.